HydrogenPro Q1 2021 presentation - Mårten Lunde, CEO Martin Thanem Holtet, CFO
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HydrogenPro Q1 2021 presentation Mårten Lunde, CEO Martin Thanem Holtet, CFO 25th of May 2021
Disclaimer The following applies to this document, the oral presentation of the information in this document, and any question-and-answer session that follows the oral presentation (collectively, the “Information”). By receiving and/or attending a meeting where this presentation is made and in accessing the Information, you agree to be bound by the terms and conditions and limitations set out herein. This presentation (the “Company Presentation”) has been prepared by HydrogenPro AS (the “Company”). The Company Presentation is strictly confidential and may not be reproduced, redistributed, published or passed on to any other person, directly or indirectly, in whole or in part. If this document has been received in error, it must be returned immediately to the Company. The Company Presentation and any information provided is only preliminary and indicative and does not purport to contain the information that would be required to evaluate the Company. The Company Presentation and the Information does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company. The Company Presentation have been prepared for the exclusive use of persons attending an oral briefing and meeting to which these materials relate given by a representative of the Company and/or persons to whom these materials have been provided directly by an authorized representative of the Company. Further, the materials are strictly confidential and by reviewing it, you acknowledge its confidential nature and agree to the terms of this notice The materials may not be copied, distributed, reproduced, published or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient, to any other person (whether within or outside such person's organization or firm) by any medium or in any form for any purpose. No liability: The Company Presentation has been prepared by the Company. The Company does not accept any responsibility whatsoever, or make any representation or warranty, express or implied, for the contents of the Company Presentation, including its accuracy, completeness or verification or for any other statement made or purported to be made in connection therewith the Company. The information in this Company Presentation and any other material discussed is subject to change. Any forward-looking statements contained in this Company Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts and are subject to risks, uncertainties and other factors that may cause actual results and events to be materially different from those expected or implied by the forward-looking statements. The Company does not provide any assurance that the assumptions underlying such statements are free from errors nor accept any responsibility for the future accuracy of opinions expressed herein or as part of the Information, or the actual occurrence of forecasted developments. Except where otherwise expressly indicated, this Company Presentation speaks as of the date set out on its cover. The delivery of this Company Presentation shall, under no circumstances, be construed to indicate or imply that there has been no change in the affairs of the Company since the date hereof. The Company does not assume any obligation to update or revise the Company Presentation or the Information. The Company Presentation is subject to Norwegian law, and any dispute arising in respect of thereof is subject to the exclusive jurisdiction of Norwegian courts with Oslo District Court as first venue 2
Agenda I. Summary II. Finance III. Business update
A very active quarter – maturing new technology, alliances and projects and increasing the project pipeline Highlights from report ▪ Building of pilot plant for new electrode technology in Denmark on plan ▪ Additional production capacity in Asia secured ▪ Our work with the projects in France (Dunkirk and Normandy) and the two projects in the US continues ▪ Very active market through the quarter with several new inquiries and tenders ▪ Progressing cooperation agreements and partnerships – e.g. Kvina Energy, Hynion ▪ Several significant leads and opportunities in the US – e.g. HyDeal North America ▪ Executive team onboarded and project execution capacity being scaled up ▪ Expanding our network to Finland through agreement with ex CEO of the Woikoski electrolyser plant ▪ ISO certification process – completion 2021 ▪ Robust balance sheet with cash position of NOK 489.5m as of 31st of March 2021 4
Agenda I. Summary II. Finance III. Business update
Financial development during Q1 2021
(NOKm)
INCOME STATEMENT Q1 2021 Q4 2020
Revenue, incl. other operating income 0.6 15.6
▪ ASP (Advanced Surface Plating ApS) was acquired in Dec
Raw materials and consumables used 0.7 4.2 2020 with settlement completed in January 2021, and is fully
Payroll expenses 4.4 2.9
Other operating expenses 3.6 10.4 consolidated in the financial figures
EBITDA -8.1 -1.9
Depreciation and amortisation expenses 1.3 0.3 ▪ Design and engineering project for Mitsubishi in the US
EBIT -9.5 -2.2 completed in Q4 2020, revenues in Q1 2021 relates to
Net financial items -0.1 0.3 completion of design and engineering phase of H2V projects in
Result before tax -9.6 -1.9 France
Tax expense -0.3 -
Net profit -9.3 -1.9
▪ EBITDA negatively impacted by non-cash effect of option
NET CHANGE IN CASH BALANCE Q1 2021 Q4 2020 program cost (NOK2.2m)
Cash balance start of period 506.1 0.7
▪ Investments of NOK5m during the quarter, incl. next generation
EBITDA -8.1 -1.9
electrodes, additional production capacity in Asia, R&D center
Investments1 -5.0 -4.4
Net proceeds from issue of share capital 0.3 532.4 at Herøya and H2V projects
Change in NWC, option program, transaction fees, tax, other -3.7 4.9
Total changes in cash -16.6 505.4 ▪ 2 558 shareholders as of 21st of May 2021 compared to ~225 at
Cash balance end of period 489.5 506.1
time of IPO in October 2020
1) Incl. net cash flow from investments and prepayments related to development of plating line in Aarhus, Denmark. Note that the acquisition of Advanced Surface Plating is not
included in the cash flow statement. The transaction was completed through a share capital increase by conversion of debt. This is in accordance with NRS (F).
6Robust financial position
(NOKm)
BALANCE SHEET Q1 2021 FY 2020 ▪ Cash balance of NOK489.5m as of 31st March 2021
ASSETS
Total intangible assets 56.7 55.3 ▪ Equity ratio of 97.5%, no interest-bearing debt
Plant, machinery and equipment 2.6 2.8
Investments in subsidiaries, shares, other securities 0.1 0.1 ▪ Acquisition of ASP:
Total fixed assets 59.4 58.1 – 600,000 new shares were issued on 8th of January 2021
Current operating assets 5.7 5.7
– No up-front cash payment, additional cash consideration
Cash and cash equivalents 489.5 506.1 of up to NOK 6 million if certain targets are met
Total current assets 495.2 511.8
▪ Limited committed investments
Total assets 554.7 570.0 – Development of plating line for next generation
electrodes: ~NOK20m (~DKK 15m) during 2021
EQUITY AND LIABILITIES
Total equity 540.6 515.7 ▪ Cost-focused scale-up of the organisation through developing
systems/procedures and hiring of resources with extensive
Provisions 10.1 10.3
Total short term liabilities 4.0 44.0 experience to execute large projects world-wide
Total liabilities 14.1 54.3
Total equity and liabilities 554.7 570.0 ▪ Partnership strategy to build global presence and market
awareness
Equity ratio 97.5 % 90.5 %
7Agenda I. Summary II. Recent events III. Business update
Highlights from recent news releases
▪ Agreement with Kvina Energy Park
– Joint development of a significant hydrogen hub in the Kvinesdal municipality in Norway. The plot is close to the main
grid for electricity with possible access to electric power of 500-800 MW
▪ Agreement with Hynion to supply hydrogen gas at filling station at Herøya and for future large scale co-operation
– HydrogenPro will supply green hydrogen to Hynion´s fueling station from test/demo electrolyser containers at Herøya
– A general collaboration with Hynion regarding large-scale hydrogen production plants which will serve as centralised
hubs for distribution to Hynion’s network of hydrogen stations
▪ Launch of HyDeal North America with HydrogenPro as a partner
– HydrogenPro joins a range of well reputed industrial companies, advisers, regulators and governmental agencies in
HyDeal North America, a new commercialisation platform founded by the Green Hydrogen Coalition to launch green
hydrogen ecosystems around North America. HyDeal LA the first major announcement
▪ Full scale verification of electrode technology
– The acquisition of ASP was completed with the Extraordinary General Meeting on 8th January which approved the
share capital increase of 600 000 new shares. Management embarked on the building of a pilot plating facility for full
scale verification of the new electrode technology in Denmark
9HydrogenPro is one of the partners of HyDeal North America
▪ HyDeal North America is a commercialisation platform to
launch green hydrogen ecosystems across North America
HydrogenPro joins a range of well reputed
industrial companies, advisers, regulators and
▪ HyDeal Los Angeles, the first regional initiative in HyDeal governmental agencies
North America platform, is intended to be a model of rapid
acceleration for additional green hydrogen ecosystems
throughout the U.S.
▪ HyDeal Los Angeles will create the first competitive, high-
volume supply chain for green hydrogen in North America,
delivering green hydrogen at $1.50/kg by 2030
▪ The City of Los Angeles has accelerated its committment to
an ambitious target of 100% renewable energy: from 2045 to
2035
▪ Los Angeles Department of Water and Power (LADWP), the
nation’s largest publicly owned utility, will convert the
Intermountain Power Project (IPP) – this is North America’s
largest green hydrogen project under development today.
IPP is the world’s first combined cycle gas turbine
intentionally designed and built to operate on 100% carbon-
free green hydrogen
10HydrogenPro will be able to deliver hydrogen at a cost of
USD1.2/kg* with integration of next generation technology
Driving down cost of hydrogen Making green hydrogen competitive to grey hydrogen
▪ Applying current high pressure alkaline solution
▪ Combining with the new proprietary ASP technology
▪ Increasing the efficiency of the electrolyser to 93% of the
▪ EU describes a target whereby green hydrogen is competitive
theoretical maximum
with grey hydrogen in 2030
▪ Scaling up and automatisation will gradually drive down capex
▪ Cost calculation based on HydrogenPro’s new high- and further reduce production costs
pressure alkaline technology shows a cost of USD
1.2/kg*
Without use
▪ Ready for the market in 2022
of noble
metals
Accelerating the global energy transition
▪ *) Assumes electricity price of USD20/MWh
11High market activity – increasing number of leads, tenders and
project opportunities
Active sales pipeline as of 31st of March 2021
▪ 42 active projects in pipeline
(GW electrolyser capacity)
▪ Avg. size per project: 117 MW 4.9
▪ H2V projects in Dunkirk and 1.4
Normandy, DG Fuels and Mitsubishi in
US are not included in the sales 1.5
pipeline 1.9
▪ During Q2 2021 we continue to see
high market activity
Europe & ME Americas Asia & Oceania Total
12Progress update on key projects
Project Status
▪ Approval process of both projects with applications being based on HydrogenPro technical solution, ongoing with
H2V Normandy and French authorities
Dunkirk ▪ H2V continues to work with subsidised financing arrangements, both EU and French
Phase I: 100 MW each ▪ Normandy: Air Liquide announced 40% ownership of the Normandy project on 8 February 2021
▪ HydrogenPro ready to lauch comprehensive ITB process for sub-suppliers for both the Dunkirk and the Normandy
project, pending co-ordination of timing with client H2V
▪ Long-term offtake agreements for parts of the planned production have been entered into
DG Fuels ▪ Long-term pricing of environmental credits related to synthetic fuel in progress
Phase I: 120 MW ▪ DG Fuels have mandated a leading investment bank to raise equity and project fincaning
▪ Contract for detailed engineering work with a large engineering company to be finalised
▪ The US accelerates its zero carbon targets and green hydrogen will play a key role in the
Mitsubishi Power energy transition
Phase I: 33 MW ▪ Mitsubishi key sponsor and participant in HYDEAL North America
▪ Continuous and frequent dialogue about Phase I development
▪ It was announced in May that Repsol was not awarded Green Deal funding for the 100MW
Repsol MOU
Petronor project
Phase I: 100 MW ▪ Dialogue and further exploration of opportunities with Repsol continue
13Global fabrication set-up to maintain cost leadership and
ensure high local activity in end-markets
▪ Three main production HUBs,
located in Europe, US and
APAC
▪ 5-7 assembly sites in each
HUB region, close to end-
markets
▪ Location of HUBs will be
influenced by mega-scale
projects
▪ Short - medium term target of
>1GW annual production
Production HUBs
Assembly sites
14Global roll-out plan
2021 2022 2023 2024
Production Expand
HUB Operate
(+ 200MW)
(~300MW)
China
Assembly
sites Plan Number of units and locations to be established in line with project deliveries
Production
HUB Plan Build Operate (scale-up TBD)
(~500MW)
Europe
Assembly
sites
Plan Number of units and locations to be established in line with project deliveries
Production
HUB Plan Build Operate (scale-up TBD)
(~500MW)
US
Assembly
sites Plan Number of units and locations to be established in line with project deliveries
15Current organisational capabilities and on-going build-up activity
▪ Experienced and internationally oriented board of directors with significant experience
Board of from industry development, QHSE, EPC & project execution, partnerships and
Directors consortium co-operation, financing etc. to support and guide management in company
scale up
▪ Base organisation including design and engineering, sourcing & supply chain and & project
execution in place. On-going additional recruiting from Norwegian & international EPC and
supplier industry.
Management
▪ Established network of subcontractors within project, engineering, construction and Our ambition:
commissioning for scale-up and project staffing
& ▪ Currently on-boarding competent and experienced staff from commissioning and operations of #1 large-scale
organisation
electrolysers. Presently personnel based in Norway and China to provide world-wide support hydrogen
▪ Currently developing selective R&D and innovation projects with world class competence based
in Norway, Denmark and China production
▪ In the process of completing QHSE organisation build-up and implement ISO standards (to be systems player
completed 3Q 2021)
▪ Actively participate in partnerships to fast-track global upscaling of the company
▪ Open attitude to partnerships within fabrication, technology, EPC & system
Partnerships integration, power producers, owners, developers, industrial users etc
▪ Seek strong Norwegian partnerships and identifying opportunities to broaden the
relationship to create a leading Norwegian hydrogen hub
16www.hydrogen-pro.com
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